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Spring, Inc. manufactures two products. It currently has 1,400 hours of direct labor and 9,100 hours of machine time available per month. The table below
Spring, Inc. manufactures two products. It currently has 1,400 hours of direct labor and 9,100 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product.
| Product A | Product B | |||||
| Unit contribution margin | $ | 23.00 | $ | 21.00 | ||
| Demand | 2,800 | units | 1,400 | units | ||
| Labor time | 1/4 | hour | 1/2 | hour | ||
| Machine time | 3 | hour | 1/2 | hour | ||
How much of each product should Spring manufacture per month?
Multiple Choice
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0 units of A and 9,100 units of B
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2,800 units of A and 1,000 units of B
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2,800 units of A and 600 units of B
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2,800 units of A and 0 units of B
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